Required

a$.$ Compute depreciation applying different accounting conventions to the straight$-$line depreciation method.

Compute depreciation for Year $1$ using the exact date, commencing depreciation on July $13$ and using $360$ days as the allocation base.

Compute full year, annual depreciation for Year $1$ based on the balance in the equipment account at the beginning of the period.

Compute full year, annual depreciation for Year $1$ based on the balance in the equipment account at the end of the period.

Compute depreciation for Year $1$ assuming one$-$half of a year's depreciation in both the year of purchase and the year of retirement, regardless of the date of purchase or retirement.

Compute depreciation for Year $1$ assuming a full month of depreciation during the month of purchase and no depreciation in the month of disposal.

Depreciation for Year $1$$

Depreciation for Year $1$$

Depreciation for Year $1$$

Depreciation for Year $1$$

Depreciation for Year $1$$

b$.$ Assume that the asset was retired on January $1$ of Year $4.$

$(1)$ Prepare the entry for disposal of the asset assuming that the company uses the exact date to calculate depreciation.

$(2)$ How does the answer differ if the company used the full year $($beginning of the period$)$ depreciation method?

$\backslash$table$[[$Date$,$Account Name,Dr$.,$Cr$.],[1.$ Jan. $1,$ Year $4,$Loss on Retirement Property,$26,880,0],[,$Accumulated Depreciation,$20,720,0],[,$Equipment,$0,47,600],[,$To record asset disposal.,,$]]$

$\backslash$table$[[$Date$,$Account Name,Dr$.,$Cr$.],[2.$ Jan. $1,$ Year $4,$Loss on Retirement Property,$30,800,0],[,$Accumulated Depreciation,$16,800,0],[,$Equipment,$0,47,600],[,$To record asset disposal.,,$$

Computing Partial Period Depreciation under Multiple Depreciation Methods

To demonstrate the computations involved in several methods of depreciating a fixed asset, the following information is provided.

$\backslash$table$[[$Cost and residual value,,Estimated service life,$],[$Acquisition cost$,$$$7,500,$Years,$5],[$Residual value,$$300,$Service hours,$6,000],[,,$Productive output $($units$),14,400],[$Required$,,,]]$

Required

Compute the annual depreciation using each of the following methods assuming that the asset was purchased on August $1$ of the current year.

a$.$ Straight$-$line depreciation: Compute the annual depreciation rate and amount for each year.

Carry all decimals in calculations; round final answers to the nearest dollar.

$\backslash$table$[[,$ation rate:,$0\mathrm{.}2,,,,,,],[,,$Year $2,,$Year $3,$Year $4,,$Year $5,$Year $6],[$$$,600vv$$$,1,440,$$$,1,440vv$$$,1,440vv,$$$,1,440vv$$$,840$